OK, computer? Hurdles remain for machine learning in credit risk

Concerns over cost, applicability and oversight give pause to banks’ use of ML techniques in credit risk

A technology that enables banks to make instant lending decisions. A technology that weighs up credit risk based on large amounts of available data and with little need for human intervention. A technology that, crucially, can learn for itself.

Banks are understandably keen to harness the perceived benefits of machine learning for credit risk. But as many firms are discovering, the technology is hard to master, requiring investment to develop and maintain methodologies. It is also attracting